The $1 Billion database bet: What Databricks’ Neon acquisition means for your AI strategy

The importance of databases to AI operations for modern institutions cannot be exaggerated.

Data helps training and floors artificial intelligenceMultiple research reports show that without appropriate data, artificial intelligence efforts tend to fail. With trends like coding Vippe and AICEC, it is also important to have a database technology that can be woven as needed in an approach without a servant for modern development efforts.

In that environment, it should not be a surprise that databases are a special valuable commodity.

this weekThis fact was presented with Databrics for the subscription for Serverless Postsql Neon, which was established in 2022. It is said that the deal is estimated at amazing billion dollars, which is shockingly, given that two years ago, the company raised $ 46 million in a round of the series B.

What causes attention in particular Databricks itself is a data seller, with the Lakehouse Data platform. At different points in the history of the company, she placed itself as an alternative to traditional databases, providing a lake of data as users can make induce. So what was missing, and why did Databricks need A billion dollar spending? What does it mean and say about the institution that artificial intelligence really needs?

Job, all of it is related to meeting the needs of developers to create AI Agence applications. According to Lion, more than 80 % of the databases created on its basic system were created by artificial intelligence agents.

What is the postgresql servant and why it matters?

Although neon is an emerging company, the basic database technology on which it depends is not new.

Postgresql is one of the oldest and most open source database platforms, It dates back to 1996. It is a technique for a database, which means that it contains tables and lines along with the very stable features that organizations have documented decades ago. The Postgresql Pattering Database is now updated in the annual release rhythm. The latest stable update is PostGRESQL 17, which He appeared for the first time in September 2024.

As open source technology, posgresql enjoyed adopting and wide contributions. At some point, it is often compared to other ownership database options, including Oracle as an alternative option. In 2025, although postgresql stands on its own.

DB engines are currently the fourth most popular in the database that is used today, behind Microsoft SQL Server, MySQL Oracle. The postgresql case 2024 of the prominent time -term is determined by the increasing open database as the preferred database of artificial intelligence applications. Its firm and concept nature in the database Wide availability is among the many factors that make it attractive.

Postgresql on its own is just the database. Its operation as offers without a server is a operating activity and spread. The promise of any database without a server is the ease of operations. Instead of requesting a dedicated database that is constantly operated with dedicated resources, the server is copied upon request as needed. It is a particularly attractive spread option for developers as a way to build applications quickly. Development based on artificial intelligence is more attractive as databases can be built and published programming.

Postgresql scene without a server contains many sellers

Each cloud has a form of postgresql service and has years.

Google has multiple shows, including Alloydb, Microsoft has a postage datab database, while AWS has Amazon RDS for Postgresql and Amazon Aurora. Each of them also has a flavor of server offers, that is, a database available upon request.

There are many smaller sellers, including the time range, EDB and NetApp Instaclusr. In fact, nearly two years ago, Databrics acquired posgresql pond.io, Which was also an early competitor for neon.

As it turned out, the goals and capabilities of Bit.IO are completely different from the neon.

“Next with the Neon team, we look forward to building the most platform for the database of developers and AI-Haaa-Electing,” Phil Shin, Director of Companies and Projects Development at Databricks, told Venturebeat. “In contrast, the Bit.io acquisition was not actually about posgres, but it targeted the developer’s experiences, especially in experiences and self -service.”

Shen added that the Bit.io acquisition had a significant impact on the experience of smooth subscription in Databrics.

How to suit posgresql without a server

Although the neon has only been present a few years ago through the postgresql application without a server, the commercial seller EDB has been working since 2004. EDB has a series of commercially subsidized post -voltage offers.

Matt Yonkovit, Vice Vice -Venturebeat Vice president, told the neon acquisition is a strong vote on the confidence in postgres as a founding technique for AI and analyzes.

“It has long been reinforced by what we thought: Postgres is increasingly central in modern data chimneys,” said Yinkovit. “Serverless is very suitable for the DeV/testing and rapid east that is rapidly released – but with these use cases, institutions need to perform the platform of sovereignty, compliance and control.”

Yonkovit noted that Serverless is perfectly suitable for short bangs and smaller work burdens. It can expand up and down quickly or turn off completely when lethargy, which greatly reduces the costs associated with the calculation, energy and storage. However, in his opinion, there are differentials.

“The big challenge with the server is that the management of sovereign data can become chaotic because you cannot control the place of data processing unless you have a set of well restricted resources,” said Yinkovit.

Postgresql power without a server for AI Agence

Postgresql approach without a Neon server separates storage and account, making it suitable for developers and artificial intelligence. It also allows automatic expansion as well as branching in an approach similar to how the GIT control system works with software instructions.

Amalgam Insights CEO and chief analyst Hyoun Park indicated that Databricks was a pioneer in publishing and expanding AI’s projects.

“One of the great challenges in artificial intelligence is the data and account -related account management,” Park told Venturebeat. “It will be difficult to predict each of these needs in an increasing way in the agent of an agent where the ultimate user and requests quickly demand unexpected demands in storage or calculating the problem solving.

Park explained that the automatic automatic approach that does not exceed the neon to posgresql is important for males because it allows agents and artificial intelligence projects to grow as needed without storing artificially associated and calculating needs together. As for Databricks, this is useful for job use and to support the designated models they have made over the past two years after the acquisition of Ai Mosaic.

What does AI leaders mean to the institution

For institutions looking to drive the road in artificial intelligence, this acquisition indicates a shift in the requirements of infrastructure to implement successful artificial intelligence.

Data is crucial for Amnesty International; This is not a surprise. What is particularly insisting, though, is that the ability to rotate databases at a speed is necessary for the success of AI AIC. The deal is verified that even advanced data companies need a database without a specialized server to support artificial intelligence agents who create and manage databases programming.

Institutions must realize that traditional database methods may limit artificial intelligence initiatives, while flexible and immediately developed server solutions allow the allocation of the dynamic resources required by modern artificial intelligence applications.

For companies that are still planning the map of the artificial intelligence road, this acquisition indicates that infrastructure decisions for databases should give priority to server capabilities that can quickly adapt to the burdens of unexpected artificial intelligence. This would transform the database strategy from artistic consideration to a competitive advantage in providing responsive and effective Amnesty International solutions.